### Symptom

A distribution rule with distribution factor as Based on Costs has been created. There is no Percentage to Distribute defined for receiving cost centers.

You want to know how the percentage among receivers is set when distributing overhead-costs using this distribution rule.

### Reproducing the Issue

- Navigate to the Cost and Revenue work center.
- Choose the Allocation view and Distribution.
- Select New and Distribution Rule for Cost Centers.
- Besides all necessary entries - In step 1 Enter Basic Data select Based on costs as Distribution factor.

### Resolution

When a distribution factor is set as Based on costs or when there is no distribution factor/percentage maintained for the receivers, distribution of cost from sender to receiver will occur as per the ratio of costs of each receiver cost center.

For example, we have a sender cost center A and receiver cost center X and Y.

A has total cost of 150 USD whereas X and Y have 40 and 60 USD respectively in a give accounting period. We have created a rule to distribute cost from A to X and Y without setting any percentage on X and Y.

Now when we execute a Overhead Distribution Run for that period, cost will be distributes as follows:

- Total cost on receivers (X + Y) = 40 + 60 = 100
- Ration on X and Y, 0.4 and 0.6 respectively.
- Cost distribute from A to X -> 150 * 0.4 = 60
- Cost distribute from A to Y -> 150 * 0.6 = 90
- Total cost on X and Y after distribution is 100 and 150 respectively.

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